Tourism Activities to Become Subject to Notification Requirements

New legislative changes are anticipated in the tourism sector that will enhance transparency and improve conditions. During a press conference, Anahit Mkrtchyan, the head of the Policy Department of the Tourism Committee at the Ministry of Economy of Armenia, noted that fundamental legislative changes have not been made in this sector for many years, whereas tourism is a dynamically developing sector that requires reform.

"One of the expected changes is that activities in the tourism sector will become subject to notification. Under current legislation, tourism services do not notify about their activities. The new changes will stipulate that tourism operators, agents, providers of hotel services, tour guides, and escorts must notify the Tourism Committee about their activities by submitting all documents required by the legislation," said Anahit Mkrtchyan, as reported by Armenpress.

The President of the Armenian Tourism Federation, Mekhak Apresyan, positively assessed the changes, indicating that they are long-awaited. According to him, the new legislative package is the basis for institutional reforms.

"Making activities in the tourism sector subject to notification is a very important initiative. It will contribute to improving the business and competitive environment in the sector. Operators will be registered, they will be required to adhere to the standards set before them. Additionally, all these listed entities will be brought into the tax system. Today, we have dishonest workers who are not registered as businesses, working from home and providing low-quality services. Through this process, the state is inviting willing parties to operate honestly in the tourism sector on equal terms," said Mekhak Apresyan.

Turning tourism-related activities into a notification requirement will also help develop an electronic registry, which will compile all information about tourism entities. The electronic registry will be open and accessible to everyone, including consumers. The latter will be able to check the activities of tour operators through these registries, avoiding fraud.

To strengthen the protection of consumer rights, another change is being planned. Specifically, current legislation stipulates that the tourism company must work with the consumer based on a contract. Anahit Mkrtchyan noted that, in practice, many tour operators do not work under a contract. The legislative gap is that there is no supervisory body. In such cases, who can citizens appeal to, and which entity will hold the tour operator accountable?

With the new changes, this supervisory function will be delegated to local self-governing bodies. In addition to imposing fines, tourism entities may lose their right to operate.

"The law will stipulate specific requirements that must be included in the contract signed with the consumer. This way, the state creates a foundation of guarantees that the consumer using the services of the tour operator is protected. We have had bitter experiences where our citizens were left in another country and the tourism company did not ensure their return, despite payment for that service. Now, by law, tour operators will be required to provide guarantees," said Anahit Mkrtchyan.

Legislative changes are also expected to improve the qualification mechanisms of the entities operating in the sector, bringing them in line with international standards. The legislative changes will come into effect on June 30, 2024, in a phased manner.